CAR LOANS INFORMATION

Please see information on Car Loans below.

        

Purchasing a car is an important step for most people, whether it is the first car or a new one to add to the collection. You may be looking for a used vehicle or a luxury one getting the right car financing is important. Find out useful information on car loans below.

What is a Car Loan?

For the majority of people, the decision to buy a car is a significant one and the size of the purchase means that a good financing plan or loan is necessary. Prices of cars can differ enormously depending on the age and model of the car.

Besides the cost of the car itself, there are other elements you must consider, including mandatory car insurance and tax.

Is a Car Loan a Secured Loan?

Yes it is. A car loan is secured using the car as hypothecation, while the charge is then registered with your local transport authority. As a secure loan, it carries the risk that if you are unable to repay the loan within the given tenure, you risk losing the vehicle to the lender.

You are unlikely to require a guarantor for a car loan, unless the bank or lender requires further backup to your documentation. If you do need to present a guarantor, you can choose your spouse, employer or any other suitable person.

Are there any Fees?

As with most loans, you are likely to face some fees. These include processing fees and administration fees. Check what fees are involved when you look at products in our comparison charts or enquire with the lender.

Am I Eligible?

To avail a car loan, you will need to present a set of documentation depending on your personal circumstances. Find out what the lending criteria is before you apply, to ensure you present all of the correct documentation. In general you will need to provide:

  • Proof of ID
  • Driving license
  • Proof of your signature
  • Proof of residence
  • Proof of income (salaried or self employed)

How Much Can I Borrow?

Generally car loans are between 85% and 90% of the car value, but this amount will vary according to the lender and your financial background or eligibility. Include this factor in your comparison and search.

If you are looking for a loan to pay for a two wheeler (e.g. motorcycle, other two-wheeled vehicle) then go to our dedicated section on Two Wheeler Loans.

        


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